Mexico vs Canada
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇲🇽 Mexico — State & Municipal Taxes
Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre Nómina) at 1%–4% (employer-paid). Municipal property tax (predial) rates vary significantly. Some states have lodging and entertainment levies. The Maquila sector benefits from special IMMEX programs. Nearshoring boom is driving new investment.
🇨🇦 Canada — Provincial Income & Sales Taxes
Canada's 10 provinces each levy their own income tax (4%–25.75% top). Combined federal+provincial top rates exceed 50% in Quebec, Nova Scotia, and Ontario. Quebec has its own QPP and QST (9.975%). Alberta has no provincial sales tax. HST replaces GST+PST in Atlantic provinces and Ontario. Property taxes are municipal.
Mexico vs Canada: Key Tax Differences (2026)
💰 Income Tax: 🇲🇽 Mexico has a higher top income tax rate (1.92–35% vs 15–33%). 🇨🇦 Canada is more favourable for high earners.
🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 5–15%).
🏢 Corporate Tax: 🇨🇦 Canada offers a lower corporate rate (15% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇨🇦 Canada taxes investment gains at a lower rate (33.3% vs 35%), benefiting investors.